You received your university degree and you find an amazing job; You look forward to those luxurious apartments and ask yourself, why not leave your student residence room or the small apartment you share with others? You can be a tenant in the place of your dreams if you opt for subletting.
Just be careful not to transform a single-family home into multi-family!
The site investopedia.com defines subletting in a very precise and somewhat humorous way, referring to the “rent of goods by the tenant”.
A more complete definition is provided by Forrent.com, which ensures that the sublease is given when a person who appears as a lessee, in a rental agreement, agrees with a third party the use or enjoyment of the partially or totally leased facility, to Change of a monthly payment. That is, it grants a leased facility for rent.
In somewhat more technical terms, it is presented when a lessee transfers part of his legal tenure to a third party, as a new tenant or co-tenant.
When should sublet a space?
These are some examples:
- If you decided to rent (rent) a luxurious penthouse in a privileged area, and as a tenant you realize that the payment has been a little uphill, you could share the apartment with third parties; This way of keeping it is sublet.
- Individuals and companies can sublet a home or commercial property of which they are renters when they know that they will not use the facilities for a while and do not want to lose the rental contract for the house, office or apartment during their absence.
- When families, due to force majeure, must move to a new home but they still have time in their current lease; In order not to pay a penalty for premature detention, they may choose to receive extra money, rather than leaving the facility empty.
- When some people, as tenants of a large property, choose to rent independent rooms, even while they are inhabiting that property. With these they can help to pay the rent of the house or generate an extra income thanks to the sublet.
However, before sublet a home, business premises, office or any part of a property to another person, be sure to check with your landlord before; This way you make sure that subletting is allowed.
Once you verify that there is a sublease clause in your lease, and you receive permission from the landlord to sublet the property, there are several things to consider before signing an agreement with the other party, recommended by the University of Pittsburgh:
- If the lease agreement does not stipulate any clause on the sublease prohibition , it is assumed that this is possible
- However, it is important to request from the owner his consent for the sublet
- The sublease is governed by state laws in some countries; check if this applies in your country; forrent.com tells us that the laws in New York and San Francisco “have guidelines where lease agreements cannot prevent subleasing“
If you will be the one who offers the tenant
Keep in mind that the sublet person will be responsible for paying you the rent, which you will then pass to the owner. Therefore, make sure you select the person rigorously; Remember that your name is in the current lease, so you will be the person responsible for paying the unpaid rent, or worse, for property damage.
As an owner, you may be required to carefully select the person and to ask for references, especially from the previous owners of whom you want to sublet.
- You can also ask the individual to sign a written sublease agreement that clearly defines all the terms, including the amount of the rent to be paid each month, and the dates on which the sublease begins and ends. In some states, a verbal agreement is binding, but it can still be challenged in court if problems arise.
- Consider charging a deposit in advance. That way, you will have some protection if the person who sublets the property does not pay the rent, or incur costs to repair the damage. If there are no problems when the person moves, you can return the security deposit when the sublease agreement ends.
- Leave in writing the conditions of the property at the time that the sub-owner takes possession. Collect a broad photographic backup or use a video camera to document the condition of the property.
- It requires the person to know about the records before giving them the keys. This is one of the best ways to protect yourself. You could also be held liable for any outstanding invoice when you return, unless you take precaution and take the trouble to request that the public services be changed in the name of the sub-lender until you return.